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$1 Billion Diamond Sale May Be Too Much Too Soon for Hurt Miners

  • De Beers, Alrosa sold more than market expected last month
  • That `exuberance' will be hard to maintain, Lucara CEO says
Miners work in an underground tunnel inside the OAO Alrosa diamond mine in Udachny, Sakha Republic, Russia.

Miners work in an underground tunnel inside the OAO Alrosa diamond mine in Udachny, Sakha Republic, Russia.

Photographer: Andrey Rudakov/Bloomberg
Updated on

The world’s two biggest diamond miners just sold $1 billion worth of gems and it’s making smaller rivals nervous.

January offerings by De Beers and Russia’s Alrosa PJSC, which control almost two-thirds of the market, far exceeded everyone’s expectations. The sales were driven by supply cuts last year that led to shortages, lower prices and better-than-expected holiday demand. But there are are concerns it’s too much too soon for an industry still reeling from the biggest rout in seven years.